STICHTING BAKENS VERZET, NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

DETAILED EXPENDITURE SIXTH QUARTER

DRAWING OF STRUCTURES
AUDITING STRUCTURES
CASH FLOW DIAGRAM.
HOW THE ORIGINAL SEED LOAN MONEY IS USED.
TANK COMMISSIONS - THE KEY STRUCTURES.
WELL COMMISSIONS

LIST OF ABBREVIATIONS USED

Abbreviation	Description
CASO4	Calcium sulphate
DIAM	Diameter
DIAM EXT	External diameter
DIAM INT	Internal diameter
EG	For example
H2O	Water
LETS	Local exchange trading system
NGO	Non governmental organisation
PV	Photovoltaic
SHS	Solar home systems
TV	Television
UV	Ultra-violet
V	Volt
Wp	Watts peak

Page	Contents

	General cover
	Draft letter to Minister
	Cover page to executive summary
	Executive summary
001	List of key words
002	Introduction
003	Drawings and graphs part of the project documents
004	Contents
006	1. Project background
008	2. The project
009	2.01 Immediate goals
010	2.02 Long term goals
011	2.03 General economic bases of the project
012	2.04 Principles behind the project
013	2.05 The five conditions precedent for a project applications
014	2.06 Institutional structures
021	2.07 The question of ownership
021	2.08 Assurances as to performance
021	2.09 Taxation under the local exchange trading (LETS) systems
022	2.10 The effects of inflation on seed loan payments and gift content
023	2.11 Insurance and gift content
024	2.12 Information flow
025	2.13 Recycling of funds and imported goods
026	2.14 Project auditing
026	3. Planned works and results
026	3.1 Hygiene education structures
027	3.2 Sanitation facilities
029	3.3 Local Gypsum composite (R) production units
029	3.4 Water supply structures
030	3.5 Institutional developments
031	3.6 PV lighting television and refrigeration
032	3.7 Domestic solar home systems
033	3.8 Payments and on-going costs
034	4. Work plan
034	4.1 First, initial research phase
034	4.2 Second phase
035	4.2.1 Health Clubs and Hygiene Education in Schools
037	4.2.2 Local social structures
038	4.2.3 LETS local money systems
039	4.2.4 Micro-credit systems structures
041	4.2.5 Gypsum composite production units
042	4.2.6 Recycling structures
044	4.2.7 Structures for the production of biomass for stoves
045	4.2.8 Drinking water structures
046	4.3 Third, implementation phase
047	4.4 Fourth, second implementation phase
047	5. Short indicative budget
049	Short analysis
049	On-going costs
050	Income and comments
050	Graphs forming integral part of project document
051	SCHEDULE 1 - The project in detail
051	01. Justification of the project
053	02.00 Cooperation of the local people
054	02.01 Health clubs and hygiene education
054	02.02 Social structures
055	02.03 Local money structures
057	02.04 Micro-credit structures
059	02.05 Gypsum composite factories
059	02.06 Recycling structures
062	02.07 Stoves and bio-mass
063	02.08 Drinking water
100	02.09 PV lighting, television and refrigeration
102	02.10 Reforestation and water harvesting
104	02.11 The project and educational structures
105	List of supporting schedules
	SCHEDULE 02 - Map of the project area (In preparation)
	SCHEDULE 03 – Constitution and Statutes of NGO New Horizons for Asokori (In preparation)
	SCHEDULE 04 - Technical information on solar pumps
	SCHEDULE 05 - Technical information on hand-pumps
	SCHEDULE 06 - Technical information on gypsum composites
	SCHEDULE 07 - The hygiene education programme
	SCHEDULE 08 - Operation of the local currency (LETS) systems
	SCHEDULE 09 - 25 progressive steps for local development
	SCHEDULE 10 - MATERIAL FOR PRESENTATIONS USING TRANSPARENTS OR POWERPOINT
	Link to paper The Role of Micro-credit in integrated self-financing development projects
	Link to paper Water supply issues in self-financing integrated development projects for poverty alleviation
	Link to paper Integrated bio systems : a global perspective
81	Acknowledgments

1. PROJECT BACKGROUND

Basic hygiene education, sanitation, waste recycling, and clean drinking water are fundamental to healthy life. A third of the world's population still lacks access to clean drinking water. An even larger number lack reasonable sanitation.

Supplying such basic life needs warrants top priority within the framework of foreign aid programmes for the benefit of the poor in developing countries.

Development of local production and services is hindered by a chronic lack of formal money. The little formal money there is leaks from the local economy to national, or more often, international, havens.

The people of the Asokori area, part of the Sekyere East district near Kumasi in Ghana, do not enjoy adequate hygiene education, sanitation or clean drinking water. Some people have dug wells or make small holes close to dry stream beds to collect water which is not hygienic. Many people have to buy drinking water.

Cooking is the most energy intensive activity in the project area. Energy for this comes mostly from bio-mass sources, especially wood of which at least 10.000 tons per year are consumed. Large parts (at least US$6 per family per month) of meagre family incomes are often spent on wood for cooking. The unsustainable use of wood leads to de-forestation and erosion, air pollution and health hazards. Moreover, the traditional cooking methods used are inefficient. The project therefore introduces highly efficient stoves. They will be locally manufactured within local currency LETS systems.

Bio-mass needed to fuel the stoves will also be locally produced and treated, without limiting the use of the natural fertilisers in local agricultural production.

Locally manufactured solar cookers will also be introduced where daytime cooking does not contrast with local customs. An important part of all loan repayments and expenditure under this project will be funded by introducing energy efficient stoves and growing bio-mass for fuel.

The project will permanently improve the quality of life and stimulate on-going local economic development of the people in the project area. It will establish local exchange trading (LETS) systems for the exchange of local goods and services and provide interest-free seed money to fund micro-credit loans. It includes hygiene education, sanitation, clean drinking water, lighting for study, efficient cooking equipment and means of producing bio-mass to fuel the stoves as well as a system for recycling non-organic solid waste. Services may be extended in a later phase to rainwater harvesting and Solar Home Systems. The project will also encourage local contribution to improved primary education structures.

The Asokori area comprises 29 communities based on the village of Asokori, for a total of 52450 inhabitants. The people live in about 6500 households. They have no sanitation, no clean drinking water supply, no hygiene education. The local authorities are the Sekyere East District Assembly and the Regional Government of the Ashanti Region. The traditional authorities are the village chiefs and King ...... of the Ashanti, who all offer their full support to this project to improve the quality of life of the people in the Sekyere East district.

The people in the communities concerned currently depend for their water supply on water direct from rivers and streams. Some individuals have boreholes and sell water to others who need it. Consumption is about 20 litres per person per day. The water from these sources is contaminated and is usually consumed without further treatment for drinking, cooking and personal needs. Water-borne diseases, while less common than in some other areas of Africa, affect the quality of life and the productivity of the people, and medicines consume vital parts of the incomes of those affected .

The way water is provided has other social implications too. The supply and management of water is usually the responsibility of women. They often have to go up to two kilometres to fetch water. This takes a good deal of their time and effort which could otherwise be used to improve the living conditions of their families. Supply of readily accessible clean drinking water should improve the health of the whole population and ease the pressure of work on women.

As there are no sanitation facilities, the people of the Asokori area urinate and defecate "in the bushes".

The proposed hygiene training, sanitation, and drinking water systems take the social structures of the communities into account. All structures are self-financing and remain financially viable and sustainable without the need for further seed money once the initial interest free seed loan has been repaid.

Cooking is currently done over an open fire, leading to intense air pollution both inside the houses and in the community. Fuel for cooking comes mostly from wood which is locally available. Each family typically uses 4kg of wood per day or about 1.5 tons per year. The typical cost of this fuel is US$6 per family per month. The total consumption is 10,000 tons of wood per annum in the project area with 6500 thousand families at a global cost of some US468.000. This amount alone over a period of six years is sufficient to pay for the entire project costs.

Non-organic solid waste disposal (common rubbish recycling) is a major problem, especially in the larger settlements. There are no collection systems organised by the local authorities. The project includes setting up local recycling centres to add value to waste products. It enables recycling of some materials within the local currency systems. Export of residual waste materials will provide formal currency income to repay micro-credit loans advanced to the recycling centres.

2. THE PROJECT

The project is centered on basic hygiene education, on the installation of sustainable sanitation, distributed clean drinking water, PV lighting for study, for the people of the Asokori area in Ghana, and on the supply of efficient stoves for cooking, the production of bio-mass to fuel them, and recycling at local level and disposal of non-organic waste.

The project includes setting up Community Health Clubs for hygiene education and hygiene education courses in schools; provides sustainable toilet and wastewater facilities, wells (wherever necessary), pumps, and water tanks; establishes local exchange trading (LETS) systems to promote local exchange of goods and services; and implements an interest-free revolving micro-credit system to pay in formal currency for items and services originating outside the local communities.

The project also refers to PV (photovoltaic) lighting for study and in clinics, and PV refrigeration for medicines. Any PV lighting needed for separate local production initiatives would be included within their respected micro-credit schemes. PV operated TV sets for education can be included. Private Solar Home Systems (SHS) may be financed by the Local Bank where users are able to sustain their obligations under a hire purchase agreement for the SHS as well as meet their obligations under the project itself.

High efficiency stoves for cooking will be produced with 100% local value added as will the bio-mass necessary to fuel them.

Where daytime cooking is not in conflict with local customs, local manufacture of Gypsum composite (R) solar cookers will be set up under the LETS systems.

Recycling centres will be set up to recycle non-organic refuse within the local currency systems.

Harvesting rain-water to increase agricultural production and the general quality of life is promoted.

The project cost is US$ 3,500,000, which can be 100% financed through an interest free loan with a 10 year repayment time. A detailed indicative budget is set out on page 33.

The project will be continued for at least a further 8 years beyond the initial two years' start-up period. After the initial two years, further development will be generated by the communities themselves under the supervision of the Project Coordinator.

The initial project will take 24 months from the date funding is approved, more particularly:
- Phase 1 : preparation and submission of the basic project.
- Phase 2 : final project preparation, arrangements with tax authorities, formation of Health Clubs and starting hygiene education, starting organisation of Gypsum composite(R) production units, setting up of local currency LETS groups; final project approval : 6 months
- Phase 3 : continuing hygiene education, building the sanitation services, installing wells, pumps and tanks, starting cooker production, organising bio-mass production, setting up the recycling centres : 18 months
- Phase 4 : installing water purification units and PV lighting systems for study purposes. Continued production of cookers and of bio-mass to fuel them. Rain-water harvesting.

From the third year onwards local development will be continued and extended to phase 5.

- Phase 5 : Extension to Solar Home Systems, water harvesting, and soil conservation and re-forestation projects.

2.1 IMMEDIATE GOALS

The immediate goals of the project are:

a) To carry out a basic hygiene education programme by establishing Community Health Clubs in the Asokori area and promoting hygiene education courses in schools.

b) To install technically appropriate sanitation for the people in the Asokori area.

c) To provide a permanent safe drinking water supply in the project area in all foreseeable circumstances.

d) To make safe drinking water available within a radius of 150-200m from users' homes.

e) To contribute to the fight against water-related diseases through hygiene education, the supply of appropriate sanitation and clean drinking water systems.

f) To reduce the work load on women

g) To provide for the continuity of health, sanitation and drinking water systems by establishing appropriate institutional structures.

h) To enable students and others who wish to study in the evening to do so.

i) To reduce the use of wood and promote reforestation.

j) To introduce efficient bio-mass fuelled means of cooking and solar cookers for daytime applications.

k) To create added value through recycling of non-organic waste.

l) To keep available financial resources (LETS money and formal money) revolving within the beneficiary communities.

m) To stimulate on-going local industrial and agricultural development through the use of local currency (LETS) and micro-credit systems.

n) To create large-scale job opportunities

2.2 LONG TERM GOALS

The long term goals of the project are:

a)To sustain on-going improvement of the general quality of life wellbeing and health of the local people.

b)To free more human resources for local production and development.

c)To reduce water-borne diseases so that medical staff and financial resources can be re-directed to other health objectives such as vaccination programmes and preventive medicine.

d)To decrease infant mortality and promote family planning.

e)To increase litreacy levels.

f)To eliminate dependency on fuels imported from outside the project area.

g)To help reduce deforestation and global warming.

h)To create value added from locally recycled non-organic solid waste.

i)To create a "maintenance culture" to conserve the investments made.

j)To increase the local pool of expertise so that local people can improve their sustainable well-being and development by identifying and solving problems, including erosion, with a minimum of outside help.

k)To create full employment in the project area.

2.3 GENERAL ECONOMIC BASES OF THE PROJECT

a)The project will be financed by interest-free seed capital in the form of a 'green' loan repayable over a period of 10 years.

b)75% of this capital will be contributed within the framework of the "country programme" of one or more of Ghana's development aid partners, and the remaining 25% by the Government of Ghana through its (Water and Sanitation department).

c)General financial supervision will be in line with section 2.14 of this project, on terms agreed with the lenders of the seed capital, but with the elimination of unnecessary bureaucratic restraints.

d)Seed capital repaid by users in monthly instalments will be retained in the local area until the end of the loan term. During that time, the repayments will be used to grant revolving interest-free micro-credits for local development.

e)Seed capital not required for short term use, will similarly be used to grant interest-free revolving micro-credits.

f)Local currency (LETS) systems set up within the framework of the project will form the general method of payment for most local goods and services produced at community level, including those provided for the project from within the local community.

g)The part of the maintenance money destined for long term replacement of capital items will also be recycled as interest-free micro-credits until it is needed.

h)Users will be 100% responsible for on-going administration, capital repayments, and maintenance costs. Each household will pay a monthly contribution of US$5 per family of 8 sufficient to cover all on-going maintenance and capital repayment costs. The instalments will be to a large extent covered by savings on funds traditionally spent on fuel, water and waste removal and by way of registration for Carbon Emission Reduction certificates under the Kyoto treaty.

i)The project encourages open competition and free enterprise within the framework of a cooperative and non-profit-making global financial structure.

j)Administration, construction and maintenance work will be done by local operators and villagers who will be paid mostly in local LETS currencies.

k)Local work will be paid for at current local pay rates expressed in the local LETS currencies.

l)The on-going administration costs of the Project Coordinator are specified in the project budget.

m)Users must make their first monthly contribution in advance, as project structures are put into use.

n)The tank commissions will be paid a small monthly allowance in formal currency, and receive an allowance in local LETS money for their work. The well commissions will be paid a monthly allowance under the local LETS currencies for their work.

o)Individual women or women's groups will, without payment, each look after their own sanitation units.

p)Regular inspection of installations will be paid as necessary in the local LETS currencies.

q)The operation of the local Asokori Rural bank may be supported by an international Green Bank to be named.

r)The Sekyere East District Council, the Regional Government of Ashanti the Departments of Local Government and Rural Development have undertaken not to intervene to impede the development of the local LETS currencies either during or after the project period.

s)The Project Coordinator will reach a specific agreement with the ( applicable tax authorities) before the start of the project as to taxation of activities under the Local Exchange Trading (LETS) systems.

t)Before the project starts, a formal agreement will be made to ensure ownership of the project is vested in the beneficiary communities, subject to formal handing over when the final instalment of the interest-free seed loan is repaid.

u)The local people design, execute, install, run, maintain, own and pay for all project structures.

v)All products and services supplied by the local people for the project will be paid under the local money systems. Those supplying products or goods for the project before the local money systems are set up will be paid from the project funds in formal currency.

2.4 PRINCIPLES BEHIND THE PROJECT

2.4.1 The basic principles behind the project are:

a)The enhancement of self-sufficiency in local economies.

b)Existing social traditions will not suffer.

c)Local expertise, labour and materials will be used.

d)Women will play an active role in the project.

e)The people of the Asokori area must be able and willing to take full responsibility for all goods and services provided under the project and for its administration.

f)The users must contribute financially to loan repayments, cover on-going costs and accept the powers of the elected tank- and well commissions.

g)The project will be self-funding. Savings on traditional fuel costs for cooking and services will cover most of the project costs.

h)The supply of traditional natural fertiliser for agricultural purposes will not be compromised.

i)Each individual user will be enabled to meet his financial commitments to the project.

Household difficulties in meeting monthly quotas can be cushioned either from the monthly allowances received by the tank commissions, or by creating a simple LETS system safety net. Members temporarily in difficulty could be allowed to run up a larger than usual debit balance. Members permanently in difficulty could perform services within the LETS group in exchange for group payment of their outstanding debts.

j)'Small is beautiful'. Small decentralized systems are to be preferred wherever possible. This promotes close contact of the people of Asokori with the installation and running of their own local infrastructure.

k) Local LETS currencies will complement the use of formal money. They will make up for the lack of formal money that would otherwise be needed to expand the quantity of local goods and services. Economic development within the LETS systems will also stimulate growth in the formal economy and increase its formal tax base.

l)The seed loan capital will be systematically recycled to users as interest-free micro-credits for productivity development. The micro-credits will allow goods and services that cannot be locally produced to be bought with formal currency outside the project area.

m)Leakage of formal currency out of the project area will be reduced. Seed capital will be retained in the local area during the 10 year interest-free loan period.

2.5 FIVE BASIC CONDITIONS

This project has been worked out with the users, who execute, run, maintain, pay for and own all the structures. Five basic conditions have been accepted by the users. Without them, this integrated self-financing development project could not be executed.

They are:

2.1 Acceptation of Health Clubs. These do not only serve the purposes of offering basic hygiene education courses. They also serve as a platform for women, so that they can organise themselves and participate and play an important role in the various structures foreseen. The health clubs therefore constitute a means of addressing the so-called "gender problem".

2.2 Willingness to pay at least US$5 per month per family of 8 into a Cooperative Development Fund. This payment covers the entire package of basic services foreseen including hygiene education, drinking water supply, sanitation, waste removal, high efficiency stoves and fuel for them, and lighting for study purposes.

2.3 Acceptance of the use of local exchange trading (LETS) systems, which enable goods and services originating in the project area to be exchanged without the need for formal money.

2.4 Acceptance of the GYPSUM COMPOSITE process which enables most of the items required for local development to be made locally with 100% local value added within the framework of the local LETS systems in local low cost labour intensive production units.

2.5 Acceptance of dry composting toilet systems with the separation of urine and faeces. Aspects relating to the form, the colour, the finish, privacy and similar will all be discussed with and decided by the users. The dry toilet systems foreseen enable waste to be recycled at household level so that problems connected with the pollution of surface and ground water can be addressed at local level without the need for major investments.

2.6 INSTITUTIONAL STRUCTURES

FOR A DRAWING SHOWING THE PROJECT STRUCTURES SELECT:

The responsibilities of the various parties which would presumably be involved in the project are:

2.6.01 THE LOCAL NGO "NEW HORIZONS FOR ASOKORI"

The NGO "New Horizons for Asokori" officially fronts for the project. Its constitution and statutes are attached to this project as Schedule 15. The members of the board of the NGO New Horizons for Asokori are fully representative of the people in the Project area and enjoy the full confidence and support of the people. Their functions are honorary.

Financing parties may nominate their representatives (eventually paid by the financing parties themselves) to the board of the NGO, with the task of acting as auditors and for the purpose of monitoring progress.

The NGO approves the project and presents it for financing within the framework of a country programme supported by a donor government.

The NGO nominates the project coordinator and puts the project funds at the free and unconditional disposal of the Project Coordinator in a bank account in the name of the Project.

The NGO does not interfere in the execution of the project, except to carry out its auditing and monitoring duties. It is the counterpart of the project coordinator.

2.6.02 THE PROJECT COORDINATOR (James Boampong)

James Boampong is responsible, together with Terry Manning, for the project preparation, for contacts with local authorities and banks and with the users, for the actual implementation of the project. Mr Boampong is also responsible for all professional work or operations that cannot, at the time of the project, be provided from within the local communities. He is also in charge of the maintenance of the project, for collecting the monthly contributions of the users (through the tank commissions) and for general supervision of payments out of the project accounts. Mr Boampong will also coordinate the establishment of the local Gypsum composite (R) production units and the network of recycling centres. Mr Boampong's fees are in the public domain and formalised in the Project budget.

2.6.03 TERRY MANNING

Terry Manning is responsible for formulating the project, initial coordination with the NGO Zimbabwe A.H.E.A.D., initial contacts for setting up the Organizational Workshops, for the organisation (through the Workshops) of the local money LETS systems, setting up a Micro Credit system, coordinating with EOS Consult in setting up local Gypsum composite(R) production units, delivering pumps, PV-panels and related materials needed to implement the project. He will act as consultant to the Project Coordinator (through the Workshops) for the training and supervision of water supply, water quality and hygiene control and maintenance personnel identified during the Workshops.

2.6.04 ORGANISATIONAL WORKSHOPS

All activities will be executed by the local people themselves. Organizational workshops (mass capacitation workshops or OW's) following the method of the Brazilian Clodomir Santos de Morais will be held for the various sectors of activity involved. During the workshops the users will organise themselves respecting the principles of the division of labour.

See Schedule 2 for information on Organizational Workshops.

Amongst the activities for which Organizational Workshops would be held are:

Setting up Health Clubs
Setting up Tanks and Well commissions
Setting up the local money (LETS) systems
Setting up Gypsum composite production units
Setting up structures for the water supply systems
Setting up structures for the sanitation systems
Setting up structures for the growing of bio-mass to fuel high efficiency stoves
Operations with the local bank and/or the Cooperative Development Fund
Setting up the waste recycling system
Setting up structures for rainwater harvesting
Setting up export-import cooperatives
Setting up a net-work of local agrarian consultants

The costs of the Workshops are set out separately in the balance sheet.

The Organizational workshops will typically directly involve about 5.000 users representing some 15% of the adult population.

2.6.05 COUNTRY PRORAMME ADMINISTRATOR(S)

The administrators of the country programme(s) who agree to supply external funds will, on acceptance, make available its 75% share of the interest-free loan necessary for the project and nominate structures and channels for supervising the project expenditure and liaising with other parties.

2.6.06 LOCAL FUNDING AUTHORITY (Department ????)

The local funding Authority will be an enabling body only, making its 25% share of the project loan available on acceptance of the project. It will accept the general supervision of the project by the External Funding Authority and guarantee the continuity of the local currency (LETS) systems. Before the project begins, it will guarantee transfer of ownership of the project to the local communities when the seed loan is repaid. It will ensure, by agreement with the Central Government, that goods imported for the project come into Ghana Duty Free. Before the project begins, it may nominate reasonable reporting procedures for the project development and expenditure. It may take full political credit for the project, but will agree not to otherwise intervene in its organisation, implementation or day to day running.

2.6.07 KING ..... OF THE ASHANTI

King ..... of the Ashanti has given his approval to the project and is a member of the board of directors of the NGO "New Horizons for Asokori". Except in that capacity King ..... will not intervene in the organisation, implementation or day to day running of the project unless asked by the Project Coordinator to do so.

2.6.08 DEPARTMENT OF LOCAL GOVERNMENT AND RURAL DEVELOPMENT

The local funding Authority will be an enabling body only. It will guarantee the continuity of the local currency (LETS) systems. Before the project begins, it will guarantee transfer of ownership of the project to the local communities when the seed loan is repaid. It will ensure, by agreement with the Central Government, that goods imported for the project come into Ghana Duty Free. It will authorise without creating unjustified obstacles the siting of boreholes, wells, feed-pipes, tanks and others structures necessary to the execution of the project.

It may take full political credit for the project, but will agree not to otherwise intervene in its organisation, implementation or day to day running.

2.6.09 LOCALLY ELECTED MP'S

The local MP's have agreed to do everything in their power to guarantee respect by the national, regional and local administrative authorities the continuity of the local currency (LETS) systems, the importation of goods destined for the project without the application of customs duties taxes or other formal levies, and the transfer of the project structures to the users.

They will act as liaison points between the Project Coordinator on the one hand and the local funding authority and the local political institutions on the other. They may take full political credit for the project, but will agree not to otherwise intervene in its organisation, implementation or day to day running.

2.6.10 THE SEKYERE EAST DISTRICT COUNCIL

The Sekyere East district council will formally approve the project. It will act as an enabling body. It may take full political credit for the project implementation, but will not otherwise intervene in the organisation, implementation or day to day running of the project. It will guarantee and respect the decisions of the (Regional) Authority in relation to ownership of the project goods and services, and fully support the local currency (LETS) systems and the duty-free entry into the project area of goods to be used in the project.

The council will approve reasonable project proposals for laying and embedding water pipelines to dedicated water tanks, drilling bore holes, digging wells, locating and building sanitation facilities, siting of Gypsum composite (R) manufacturing units, siting of, and collection of rubbish by, recycling centres.

2.6.11 THE LOCAL (REGIONAL?) HEALTH AUTHORITIES (name them and those responsible!!!)

The (local health authorities) are responsible for health services in Asokori. They will respect the administrative decisions taken by the (Regional Government and the ...... ) relating to the Project and will approve of the use of their own Health Workers within the framework of the Community Health Clubs' hygiene education programme to be set up by Zimbabwe A.H.E.A.D.

The health authorities will approve that their health workers be paid in the local LETS currencies for any work not already covered under their existing salaries.

They will approve that ownership of drinking water facilities, sanitation services where supplied, PV lighting, PV refrigeration, and water testing equipment placed in clinics within the project area be vested in the tank commissions in whose areas the clinics are situated.

They will support hygiene education courses in schools in the project area.

They will reach an agreement with the project coordinator to ensure training of (women) users at on-going checks of water quality, and systematic inspections of the sanitation facilities built within the framework of the project. Testing and inspection work not already included within the Health Workers' salaries will be paid for in the local LETS currencies. The equipment for conducting such systematic water quality tests will be made available under the project to a local clinic or hospital and financed by testing work carried out by the clinic for third parties outside of the project area.

PV lighting, sanitation where needed and refrigeration for medicines for the clinics in the project area which are not on the grid will be paid for by the communities as they do for drinking water facilities dedicated to the clinics and schools in the project area. Ownership would in this case be vested in the tank commission in whose territory the clinic is located. PV lighting and refrigeration installations in clinics outside the project area serving users inside the project area need to be separately discussed. The disposal, where required, of specialised waste from clinics will be addressed separately.

The health authorities will help train people to make regular hygiene inspections of the local recycling centres.

2.6.12 THE LOCAL (REGIONAL?) EDUCATION AUTHORITIES

The education authorities will approve that ownership of drinking water and sanitation facilities and PV lighting placed in schools within the project area be vested in the tank commissions where the schools are located. They will also approve that the teachers' commissions nominated to operate water and sanitation services and PV lighting report to the local tank commissions.

They will support hygiene education courses in the schools in the project area and approve the reasonable course curriculum presented by the Project Coordinator and apply it during normal school hours.

2.6.13 THE LOCAL TAX AUTHORITIES

The Project Coordinator will reach a binding agreement with the tax authorities, before the Project gets under way, to ensure that the tax authorities are not deprived of current tax revenue.

The project is based on a tax moratorium of at least 20 years on all LETS activities.

The tax authorities will define LETS activities carried out in LETS currencies under the project as non-commercial, and therefore non-taxable.

2.6.14 THE ASOKORI RURAL BANK

The Asokori Rural will administer project funds actually deposited in Asokori in Ghana. On the instruction of the Project Coordinator, it will formally administer Grameen Bank style interest-free micro-credit loans and repayments and the project funds, in cooperation with the External Green Bank. It will NOT intervene in the decisions relating to the granting of the loans themselves which will be made by the project coordinator in consultation with the communities. Any shares held by the project in the bank will be held on trust for the people of the project area.

The bank will autonomously finance and administer micro-loans for the installation of solar home systems for individual non-productive household use.

2.6.15 THE EXTERNAL BANK (TO BE DEFINED)

The external funding authority will pass its financial contribution through an appropriate financial institution, where possible a Green Bank willing to act as adviser to the Asokori Rural bank. The external Bank will, on the instruction of the project coordinator, administer the project monies deposited in Ghana, under the supervision of the External Funding Authority and will support the Asokori Rural Bank in setting up the Micro-credit system for local development.

2.6.16 THE LOCAL GYPSUM COMPOSITE(R) PRODUCTION UNITS

These units will make, with a sanitary finish where necessary, ecological items such as water tanks, water containers, well-linings, san-plats in low cost labour intensive production units with up to 100% local value added. They will also make the high efficiency stoves and solar cookers. The Project will finance them on an interest-free basis with a pay-back period of 3-5 years. They will operate autonomously and negotiate payment of any royalties directly with the Technology Owner. They will usually sell their products within the project areas in the local LETS currencies, and outside the Project areas in formal currency. Precedence will be given to making items of top priority to the Project. Ownership of the production units will pass to the factory owners when the loans have been repaid. Until then the factory owners will be responsible to the Project Coordinator.

2.6.17 TANK COMMISSIONS

TANK COMMISSIONS - THE KEY STRUCTURES.

Every water tank supplies an area or group of households with water. A tank commission, elected by the users, will supervise the use of the tank and its associated works, the collection of the monthly contributions and the carrying out of minor operations such as keeping tank areas clean. Each tank commission will be paid a small monthly fee in formal currency, equivalent to perhaps US$ 5 per month, which it is free to spend as it wishes. Since women enjoy the greatest benefits from the execution and on-going management of the project, they should provide most of the tank commission members.

Ownership of a given tank and its associated works, of the dedicated solar pump, PV array and array support, and of the dedicated pipeline from the pump to the tank is vested in its respective tank commission.

The tank commissions will nominate one of their members to liaise with the system maintenance structures set up.

The tank commissions would also be responsible for study rooms and PV lighting and for coordination of recycling in their area.

The tanks commissions will be set up using the Moraisian organisational workshop method. Their form may vary from one area of the project to another.

They will nominate a litreate person to liaise with the local LETS system coordinator.

The drinking water installations and sanitation services dedicated to schools and clinics will be supervised by commissions of respectively teachers and medical staff who will report to the tank commissions where the schools and clinics are located. Ownership of these installations will be vested in the local tank commissions with the consent of the local Education and Health authorities. The costs of loan repayment and maintenance of these installations are built into the users' monthly payments.

PV lighting, PV refrigeration, and water testing equipment supplied to clinics in the project area will likewise be run by the medical commission supervising the water supply. Ownership of these structures will be vested, with the consent of the Health Authorities, in the tank commissions where the clinics located. The medical commission will report to the local tank commission.

The problem of specialist waste removal from clinics, where needed, will need to be studied separately.

The tank commissions will also convene regular meetings to discuss activities under their local LETS system and priorities for micro-credits.

The tank commissions will elect the well commissions.

The tank commissions will nominate a female candidate from their own area to carry out cooperative inspection of the sanitation, rainwater harvesting, and cooking facilities installed, and arrange for her training.

2.6.18 WELL COMMISSIONS

WELL COMMISSIONS

Every well/bore hole area comprises:
- The well or bore hole itself
- The backup hand pump installation
- The washing area
- The enclosure for PV systems and supports
- A guard system for the PV installations

The well commission, elected by the tank commissions, supervises the use of the structures common to the water supply system, and carries out minor maintenance operations such as cleaning washing areas, well areas, and backup hand pump systems. The well commission also regulates use of the well area in case of crisis or calamity. It collectively receives a small monthly payment in the local LETS currency (e.g. the equivalent of US$ 5 per month) which it is free to spend as it wishes. Members can be awarded a salary paid out under the local money LETS system. Since women enjoy the greatest benefits from the execution and on-going management of the project, they should provide most of the well commission members.

The well commission will nominate one of its members to liaise with the system maintenance structures set up and with those responsible at tank commission level for maintenance.

The well commissions will nominate a female candidate from their own area to monitor the cooperative inspection of the sanitation, rainwater harvesting, and cooking facilities carried out at tank commission level, and arrange for her training.

2.6.19 ZIMBABWE A.H.E.A.D.

This NGO from Zimbabwe is the author of the original material for the Health Clubs.

BASIC COURSE FOR HEALTH CLUBS

The Community Health Clubs will be set up, and local health workers trained to lead the hygiene education courses during a Moraisian organizational workshop.

A hygiene education course for use in the schools in the project area will be developed the same way, and health workers and teachers trained to apply it.

2.6.20 EOS CONSULT

This Dutch company is the registered owner of the Gypsum composite(R) process.

It will act as consultant during the Organization Workshop during which the local Gypsum composite (R) production units in the project area will be set up, and independently negotiate any conditions for technology transfer.

2.6.21 MEDICAL COMMISSIONS

Medical commissions will supervise installations supplied to clinics under the project. They will report to the tank commission where the clinic is situated. They will where required arrange with the Project Coordinator collection of special medical waste products.

2.6.22 TEACHERS COMMISSIONS

Teachers commissions will supervise installations supplied to schools under the project.

They will support and apply the approved hygiene education courses in the schools.

They will report to the tank commissions where the school is located.

2.6.23 THE INDEPENDENT AUDITOR

Financing parties may nominate an independent auditor to co-sign payment authorisations made by the project. The independent auditor answers to the project NGO. See par. 6.14 for more information.

2.7 THE QUESTION OF OWNERSHIP

As project structures are completed, ownership in them will formally pass to the people of Asokori (through the Tank Commissions). Until all debts have been repaid, the project coordinator will retain the right to recover any installation supplied under the project should the people not meet their financial obligations for them. The interest free loans will be repaid over a period of 10 years. Until repayment has been completed, the project coordinator will retain formal responsibility towards the funding authorities for maintenance and administration.

Before the project starts, the project coordinator will offer to provide on-going maintenance, training of maintenance operators, and administration for an agreed fee for at least ten years. Pumps and structures have a life-span of more than 20 years. Once the seed capital has been fully repaid at the end of ten years, on-going monthly contributions will create a large surplus for future renewals and extensions of the project facilities. Until it is needed, this money can be re-invested interest free in micro-credit loans for local development.

Ownership of drinking water installations, PV lighting and refrigeration and water testing equipment installations in schools and clinics will be vested in the tank commissions where the schools and clinics are located.

Ownership of PV lighting sanitation services and refrigeration installations in clinics outside the project area serving users inside the project area needs to be separately discussed.

2.8 ASSURANCES AS TO PERFORMANCE

The project involves complex on-going interaction amongst several parties. For the project to be finished on time, each party must agree to meet his obligations within the prescribed time. A penalty system may be used in case of late delivery of goods and services. If any party feels unable to meet the proposed time line he must say so when the project details are finalised at the start of phase two. The time line can then be adjusted to suit his needs before work begins.

Financial and political participants should each issue a written warranty that money, permits, and guarantees they have agreed to provide will be forthcoming on schedule.

As the project is cooperative in nature, the participating parties, and in particular those financing the project, are free to impose appropriate reporting and verification procedures which should be simple and direct to eliminate "red tape".

2.9 TAXATION UNDER THE LOCAL EXCHANGE TRADING (LETS) SYSTEMS

For a drawing of the proposed LETS structures refer to:
DRAWING OF PROPOSED LETS STRUCTURES.
HOW A LETS TRANSACTION WORKS.

This project is designed to create rapid, sustainable and durable local development.

The project coordinator will reach a binding agreement with the (tax authorities --- name them!!), before the project gets under way, to ensure that the tax authorities are not deprived of current tax revenue.

The tax authorities will define LETS activities carried out in LETS currencies under the project as non-commercial, and therefore non-taxable.

The project is based on a tax moratorium of at least 20 years on all LETS activities.

After the moratorium, the following basic rules will apply:
-1. LETS exchanges where a user helps a friend, or performs a job on a "one-off" basis are not taxable.
-2. LETS exchanges involving activities not part of the normal business activities of the supplier are excluded.
-3. The expression "normal business activities" will be interpreted in the manner most favourable to the users.
-4. Normal LETS exchanges by businesses are taxable.
-5. All costs and business expenses are tax deductible.
-6. Businesses will be taxed in respect of LETS exchanges on the net profits they generate from them.

2.10 THE EFFECTS OF INFLATION ON SEED LOAN REPAYMENTS AND GIFT CONTENT

This project sets up a user friendly interest-free financial environment based on the constructive recycling of a ten year interest-free loan and the creation of local exchange trading systems.

Users repay the interest-free loan after ten years. At that point of time they will have been repaying the loan at the rate of approximately US$5 per family per month for 120 months. Their repayments are, however, made in the local (formal) currency. Should the local (formal) currency through inflation or exchange measures have devalued against the US$, the amount in local currency collected by the users will not be sufficient to pay the original loan back . This situation is beyond the control of the parties to the project, and in particular of the users.

A decision on how this risk is to be covered will therefore need to be made when the project is being financed.

Is the interest-free seed loan to be expressed in the local (formal) currency or in US$?

LOAN EXPRESSED IN LOCAL CURRENCY

If the loan is expressed in the local (formal) currency, then the external bank (working together with the local bank) will need to obtain the acceptance of the lenders that the amount repaid, when reconverted into US$, may be lower than the original US$ loan.

The following are four possibilities:

1) The lenders or their governments formally accept they are willing to run this risk and write off the eventual difference as a gift.

2) The lenders agree to extend repayment time until the total amount collected in the fund is sufficient to repay the whole loan expressed in US$. This can lead to a "win-win" situation in that the amount available for recycled micro-loans would remain at a high level. In return for the extra monthly payments, users have more money to recycle in micro-loans than would otherwise have been the case.

3) The lenders require payment of the available funds on expiry, and that the difference be collected using the next following monthly payments, until such time as the original amount expressed in US$ is balanced. This solution is negative for users in that for a shorter or a longer period (depending on the inflation which has taken place) users will not be able to benefit from re-cycled micro-loans and on-going local development will slow down and could, in some cases, even stop.

4) The lenders require repayment of the available funds on expiry but reinvest any difference for a further cycle of ten years. This will reduce users' funds for renewing capital goods or extending services at the end of the second period of ten years, but will not negatively affect recycling of micro-loans for on-going local development under the project.

LOAN EXPRESSED IN US$

If the loan is to be expressed in US$, will users' monthly repayments be indexed to the US$? If so, how will the monthly rate expressing the amount payable in US$ be determined, and by whom? How will the users be advised?

If repayments are to be indexed to the US$, the total amount collected by users over the ten year period may, when converted into US$, still be (considerably) less than the total original amount in US$. This is because the indexing of the local payments to the US$ is progressive over ten years while the exchange rate applicable on repayment of the loan after the ten years' loan period is the one applicable at the moment of the repayment. The difference would normally be less than where the loan is expressed in the local currency, but one of the four options mentioned above would have to be applied to it.

2.11 INSURANCE AND FORFEIT IN THE FORM OF GIFT IN CASE OF LOSS OR DAMAGE TO CAPITAL STRUCTURES

Long term political stability in Ghana is essential to the success of the project, especially during the period of the ten year interest-free seed loan. Without it ongoing integrated development cannot be guaranteed.

While capital structures installed within the framework of the project may, if rarely, be insurable against loss or damage by Act of God such as lightning, hurricanes, or earthquakes, it is not possible to insure them against loss or damage deriving from causes such as Act of Political and Military Authorities, civil war, commotion, rebellion, and strikes. Even if insurance against such risks were to be available the cost would be so high that it would constitute a major on-going financial leakage from the project area, which is just one of the major problems applications under the Model are designed to stop.

What happens in case of loss of or damage to the capital structures installed under the project Model before repayment after ten years of the interest-free seed loan must therefore be clearly addressed at the time the project application is being financed.

The beneficiaries of the project are by definition poor and the loss or damage in question derives from causes entirely beyond their control. To require these poor people to repay a loan after ten years for capital structures they have lost for reasons beyond their control is in profound contradiction with the short term and long term goals of the project. In some cases the lending organisations may have forms of insurance available to cover funds at risk in projects in developing countries. In such cases they would ensure, at their own cost and by way of gift, that funds for the project are insured by such Funds. Where, however, such insurance is not available, the lending organisations should accept that in the case of loss of or damage to project structures deriving from causes beyond the power and control of the users the interest free loan be converted into a gift so that users are freed from their contractual obligations.

Normally, at the time the (uninsured) loss of or damage to the capital structures occurs, users will have paid a part of the loan into the Cooperative Development Fund.

The project must clearly whether the money which has already been collected in the Cooperative Development Funds at the time the loss of or damage to the capital structures occurs:
a) Must be used immediately to reinstate the capital goods lost or damaged
b) Has to be repaid to the lenders at the end of the original ten years' interest free loan period.
c) Has to be repaid immediately
d) Will, subject to analysis of the current political situation, be integrated by a further loan to enable complete reinstatement of the capital structures so that the project application can make a re-start.

2.12 INFORMATION FLOW

The three main lines of information flow foreseen under the project are:

a) Transfer of information within project applications

- Vertical, from project coordinator (who would also liaise with external sources involved, such as education authorities, schools, health authorities, clinics) to well commission level to tank commission level to individual user and return back up the line
- Horizontal, for instance within the LETS groups and between LETS groups, between tank commissions, and between well commissions
- Combination of both - through local radio stations
- Project website mainly as a source for b) and for information sharing in general for (c) below

b) Local consultants, activity groups, and schools

-Through local consultants with small businesses set up under interest-free micro-loans under the project, who help local people choose crops to grow, instruct on agricultural methods, give professional advice on productivity questions etc
-Local translation bureaus set up under interest-free micro loans under the projects to put material into a form the local people can understand
-Activity groups working under the LETS systems with any of the parties in a), such as the Health Clubs foreseen, groups of actors etc
-Local schools, information and courses for children and, eventually, adults

c) Transfer of information from and to external sources

- Incoming through information shops set up as private businesses (as in b) " local consultants") under the project. These would have telephones, faxes, computers.
- Outgoing, through cultural and economic websites ( recent experiments in India), where individual interest groups make their cultural activities and their wares known to the outside world, either independently or through the information shops.

Communication and monitoring

Within each of the above specific sectors, rather complex interdisciplinary relationships can arise. Just to cite one typical example, to make the integrated sanitation system foreseen work, users need to be advised on the benefits of better hygiene (Health Clubs) then practise what they have learned and install their new toilet (and, eventually, water harvesting) systems. A system of cooperative inspection then needs to be put in place. A home inspection report has to be developed. Local women nominated by the tank committees have to be trained to apply the report system and to advise and help users where they are doing something wrong. Women nominated by the well commissions have to be trained to monitor the work of the local inspectors. A woman nominated by the (unified) well commissions will have to check the work of the well commission monitors. Information and experiences would need to be exchanged both vertically and horizontally under a).

The same users will at the same time need separate instruction on how best to recycle their urine, and later, their composted faeces. Basic recommendations will be developed under the projects for this, although single users, the local tank commissions, or the project coordinator could also obtain consultancy under b). Where the project supplies recommendations, cooperative structures similar to those described for hygiene would need to be developed to make sure they are applied properly.

2.13 RECYCLING OF FUNDS AND IMPORTATION OF CAPITAL GOODS

Purchases in formal money of capital goods for production purposes will normally need to be imported into Ghana.

The first series of such purchases is usually made with the original loan funds. Since the original loan funds are made available in US$ or other leading international currency, and converted into the local currency for the purposes of the project, their re-conversion where necessary from the local currency into the international currency should not pose a problem.

The amount of capital goods needed for local productivity increase under recycled micro-loans could, however, amount to several times (5 or 6 times or more) the amount of the original interest-free loan expressed in foreign currency.

A condition for the granting of an interest-free loan under the project is, normally, that the beneficiary be able initially to sell some of the goods or services in question outside the project area for formal money to enable him to repay the loan. The beneficiary therefore exports the goods or services outside the project area for formal local currency, but not necessarily outside the national borders. Since capital goods may often need to be imported into the country where the project area is situated, a situation of financial leakage of formal national currency occurs for the purpose of buying the foreign currency necessary for the purchase of new capital goods for production purposes. This financial leakage is not desirable but it may in part be offset by the increase of local production tending towards a reduction in the need for imported goods. The leakage can only be completely avoided where the project area succeeds with time to export directly outside national boundaries enough of its production to earn enough foreign currency to cover the costs of the imported goods. It is unlikely this be possible at least in the early phases of a project application. The local government must therefore when it approves a project application under the Model accept that this (temporary) financial leakage is going to take place during the initial stages of the project. Its Finance Ministry must ensure flexibility in granting leave to convert local formal money into the foreign currency necessary for the purchase of the capital goods. Failure of the Ministry to do so would in practice lead to serious delays in project execution. The more often the project funds are recycled the more rapidly the project area will develop. The Project Coordinator, on the other hand, is bound to endeavour to reduce the financial leakage of formal currency in question by purchasing capital equipment, where available, which has already been imported and is available on the local market.

The following schedule will produce a zero national import/export balance for the project during its execution and a long-term ongoing credit balance:
First two (executive) years : zero franchise
Third year, at least 35% of imported value exported
Fourth year, at least 50% of imported value exported
Fifth year, at least 75% of imported value exported
Sixth year, at least 100% of imported value exported
Seventh year, at least 125% of imported value exported
Eight and following years, at least 150% of imported value exported

2.14 AUDITING STRUCTURES

AUDITING STRUCTURES

The project is based on separation of powers between the controlling party (the project NGO New Horizons for Asokori) and the project coordinator nominated by the NGO to execute the project.

Financing parties have, if they wish, two structures enabling them to carry out on-going audits of the project works.

1. The project NGO fronts for the project and maintains on-going auditing powers to ensure correct project execution. The statute of the project NGO allows the financing parties to nominate executive auditors to the Board of Directors. The nominated auditors may be paid salaries by the financing parties. For practical purposes they should be resident in or near the project area. The NGO does not intervene directly in the execution of the project, as this is the responsibility of its nominee project coordinator.

2. Financing parties may also nominate an independent auditor to act the with project coordinator to co-sign payment authorisations and conduct an on-going audit of project out-go. The independent auditor answers to the Board of the NGO, which includes executive audit nominees of the financing parties. His salary is paid by the financing parties. The independent auditor may not intervene in the running of the project itself. For practical purposes the independent auditor must be resident in the project area.

To avoid conflict of interest, neither the project coordinator nor the independent auditor may be a member of the NGO. They both report, independently of each other, to the NGO.

3. Planned works and results

3.1 Hygiene education structures

Voluntary Community Health Clubs are set up within the project area. The members of each Health Club, which can include men, follow a course normally lasting at least six months. During the course, hygiene-related topics are discussed under the leadership of a specially trained Health Worker.

The structures, rules and administrative aspects of the Health Clubs will be established during one or more Organisational Workshops, during which the Health workers will also receive due training.

For some indicative information on the courses, refer to Schedule 7. This material is subject to adaptation according to the preferences expressed by the Workshop participants.

BASIC COURSE FOR HEALTH CLUBS

The Health Clubs will continue to meet regularly after the course has finished. Their role is fundamental to the project. They serve as a forum for identifying community needs, assisting with project planning and implementation, and developing the sense of unity and cooperation on which the success of the project depends.

A system will be set up to provide on-going inspection of the individual sanitation and water supply systems by local Health workers.

Water quality will be systematically monitored by a local clinic or hospital using testing equipment supplied under the project.

Hygiene education courses will be established in the schools in the project area. They will be supported and approved by the local Health and Education authorities. They will be applied during normal schools hours under the supervision of the teachers' commissions.

3.2 Sanitation facilities

For a diagram of the proposed waste disposal system see:

DRAWING SHOWING PROPOSED WASTE DISPOSAL STRUCTURES.
DRAWING OF COMPOSTING TOILET TANK MADE FROM GYPSUM COMPOSITE(R)

These are based on the separation of urine, faeces, and grey water.

In urban areas, urine, grey water and fertiliser can be used in vertical gardens made from Gypsum composite (R) blocks under the LETS systems.

The number of users for each toilet unit will be decided during phase 2 of the project based on users' preferences and customs in accordance with the decisions reached during the organisation workshops to be held. Units could be for an individual or a group of related families.

A typical unit will comprise a small toilet building containing three Gypsum composite(R) tanks. One tank will be used for urine. The other two tanks will be used as aerobic composting toilets. Building support structures, san-plats for urinals and toilet seats will also be supplied by the local Gypsum composite(R) production units. The toilet structures will be built by local builders or cooperative groups and paid for using the LETS local currencies. Use of improved evaporation systems could eliminate one of the composting toilets. For health reasons we prefer the twin tank method.

Almost the whole sanitation project can be done under local exchange trading (LETS) systems, with nearly 100% local value added.

The toilets will be supplied with appropriate washing and cleaning means for personal hygiene.

A small quantity of locally available lime, ash, sawdust or similar would be added to the urine tank once or twice a day and to the faeces after use. The contents of the urine tank can be emptied at any time. A mixture containing one part urine and ten parts of water can be safely used for watering plants. This high quality product has been known to more than double the productivity of a household garden. An average family with 5 members can produce about 25m3 of this fertiliser per year.

Users not wishing to dispose of the urine themselves will hire local operators to do it for them under the local LETS currency systems. The development using LETS currencies of a collection system may be needed in poor urban areas where users have no gardens or are unable to dispose of their urine.

With the double composting dry toilet system, one properly aerated toilet tank is used until it is more or less full. It is then sealed and allowed to compost for 9-12 months while the second toilet tank is being used. The contents need to be moved from time to time. During that time, the compost in the sealed tank reduces to about one wheelbarrow full of soil per adult person per year. After 9-12 months composting, the soil can be safely and profitably used as soil conditioner.

With a single tank improved evaporation system, the faeces are dried by circulating relatively warm air in the system. It produces coagulated pellets that look like dry dogs' food. The residue is light and small. The tank can be emptied any time at 2-3 year intervals and the contents safely used as soil conditioner.

Users not able to dispose of the soil conditioner will hire local operators to do so under the local LETS currency systems.

Organic material other than urine and faeces will be composted in simple compost boxes built and supplied under the local LETS currency systems.

In rural project areas, grey household water from the kitchen and from household cleaning can be collected in an appropriate closed container and spread on the family vegetable plot once a day, avoiding the formation of open or stagnant pools and concentrations of water. It can also be used to dilute urine. Users not able to dispose of their grey water will hire local operators to do so under the local LETS currency systems.

In urban areas, grey water may need to be regularly collected, possibly together with urine, and taken to the countryside nearby where it can be recycled. This work would be done under the local LETS currency systems.

Non-organic solid waste products will be recycled in recycling centres operating under the local currency (LETS) systems, creating more local added value. In larger communities the centres may be specialised to some extent. Collection charges will depend on the kind of material being recycled. Environmentally harmful materials will be charged for at a higher rate than other materials. Special waste from clinics will be addressed separately.

Appropriate sanitation services where needed for schools and clinics in the project area will be included in the project.

Useful references for further information on dry sanitation are:
a)Winblad Uno et al, "Ecological Sanitation", SIDA (Swedish International Development Cooperation Agency), Stockholm 1998. ISBN 91 586 76 12 0
b)Del Porto David & Steinfeld Carol, "The composting toilet system book", CEPP (Centre for Ecological Pollution Prevention), Concord Massachusetts 1999. ISBN 0-9666783-0-3
c)Sawyer Ron (editor), "Closing the Loop - Ecological sanitation for food security", UNDP-SIDA, Mexico 2000 ISBN 91-586-8935-4

3.3 Local Gypsum composite(R) production facilities

The project requires the supply of many water tanks, water containers, well-linings, san-plats, toilet seats, and support structures. Many of these are traditionally made from concrete, using materials that have to be paid for in formal currency and are usually not available locally. Concrete and cement are environmentally unfriendly and are difficult to dispose of after use. Concrete water tanks can cost up to US$ 4000 per tank. Concrete products are also subject to production faults and cannot always be repaired when damage damaged. They are heavy and difficult to transport.

A practical alternative to concrete, is to use a new-age product like Gypsum composite(R). Gypsum composite(R) production units can be established wherever there are local deposits of cheap gypsum (CaSO4 + H2O) or anhydrite (CaSO4 + 1/2 H2O) which are very common, occurring naturally in most parts of the world. They can be used to make cheap, ecological, hygienic tanks, well-linings, toilets and other products. Gypsum composite(R) is a state-of-the-art technology originating in the Netherlands. It can easily be transferred to Ghana. The Gypsum composite (R) production units can make a major contribution to the regional economy after the project has been completed as well as manufacturing the products needed for the project itself.

Gypsum composite(R) production units are permanent industrial assets. They will be used to make various load-bearing structures and other building materials. Gypsum composite (R) can even be used to weather-proof the mud walls of locally built houses and as a substitute for construction timber, reducing de-forestation.

Gypsum composite (R) will also be used to make high efficiency stoves. The stoves can stand temperatures of up to 500 degrees C. They will recycle heat from smoke circulated around the pot. The stoves can be safely carried by hand with boiling water in the pot and fire in the stove. Although they will work with any sort of fuel, mini-briquettes made from bio-mass will be produced locally under the project.

Gypsum composite (R) will also be used to make solar cookers under the LETS systems in applications where daytime cooking is not in contrast with local customs.

The modest cost of Gypsum composite (R) production units will be funded within the project by interest-free green loans repayable over a period of 3-5 years. The initial casting moulds for Gypsum composite (R) products can cost up to US$ 7000. These costs will restrict the initial range of products any single production unit can make. The top priority will be to service the needs of the project itself. Additional copies of the initial moulds are, however, very cheap to make.

The entire system for the production of items in Gypsum composite from cheap gypsum or anhydrite, the management of the deposits of raw materials, the construction of the factories, the production and installation on the items manufactured will be organised during a series of Moraisian workshops for which a separate allowance has been made in the budget.

While the workshops will work out the details, it is foreseeable that the Gypsum composite production be highly labour intensive calling for minimum capital outlay. The products can be made manually without the need for any machinery, with a western-level finish.

Refer to Schedule 6 for more information on the Gypsum composite (R) (r) process.

3.4 Water supply structures

For a diagram of the water supply structures refer to:
DRAWING OF WATER SUPPLY STRUCTURES.

There are no organised drinking water supply systems in the Asokori project area. Some people have dug wells. Others have dug holes close to dry stream beds to collect water which is not hygienic. Many people have to buy drinking water. This project will be decentralised. About 47 large diameter wells will be dug using local labour, construction methods and materials supplied under the local LETS systems.

About 6-9 solar submersible horizontal axis piston pumps (see Schedule 4 for a full description) will be installed in each well. Each of the pumps will supply water to a dedicated water tank serving a local community. The well is the hub of the supply system. The water pipelines radiating from it are its spokes.

Schools will each receive one dedicated tank. Clinics, for further safety, will be served by two tanks each with its own pump.

Each well will be equipped with back-up hand pumps (see Schedule 5 for a complete description of the hand pumps).The hand pumps will provide water during unusually long periods of bad weather.

Where culturally appropriate, there will be a communal washing area near each well so that women used to doing their washing in groups can continue to do so. The backup hand pumps may also be used to service the washing areas and in cases of emergency.

The water supply is based on a water consumption of 25 litres per person per day. Since solar energy is to be used to pump the water, bad weather must be taken into account. For that reason, the tanks need to have a capacity for three days' use. Each tank will supply about 200 people. The capacity required to give 25 litres per day to 200 people for three days is 15m3, the planned size of the tanks.

3.5 Institutional developments

For a drawing of the institutional structures foreseen refer to:
DRAWING OF STRUCTURES.
CASH FLOW DIAGRAM.
HOW THE ORIGINAL SEED LOAN MONEY IS USED.
THE INTEREST-FREE LOAN CYCLE .

Permanent on-going procedures to maintain and administer the system will be worked out with the users themselves during Organization Workshops to be run for this purpose, with the involvement of Terry Manning as consultant, the project coordinator, the tanks and wells commissions, maintenance and inspection staff, and the Asokori Rural bank that administers the micro-credit loans.

The purpose is to create a "maintenance culture".

Structures to be created include the Health Clubs, the local money systems, the Gypsum composite factories, systems for installation and maintenance of the drinking water supply system, waste recycling structures, structures for the production of bio-mass, the local banking and micro-credits system, and the tank and well commissions.

Multiple re-cycled interest-free micro-credits will provide formal money needed to develop local production capacity. The rest of the development will be done with the LETS systems.

The capital available for re-cycling in the form of micro-credits is made of:
a) Part of the initial seed money until it is needed for the project.
b) Seed loan repayments.
c) Micro-credit repayments.
d) The long term maintenance fund.
e) The system capital replacement fund which will be built up after the ten years' seed loan has been fully repaid.

For instance, a woman may need a sewing machine to be able to make clothes. She will need "formal" currency to buy the sewing machine. That money will be available in the form of an interest-free micro credit. She will sell outside the local LETS system some of the clothes she makes to earn the "formal" money she needs to repay her loan. The rest of the clothes can be sold within the local currency LETS system.

As she repays her loan, the repaid capital can be loaned again for another interest free micro-credit project, so the available seed money repeatedly re-circulates within the local economy.

Establishing local exchange trading (LETS) systems to overcome the chronic lack of "formal" money in the Asokori area is fundamental to the project. LETS systems create local currency units to exchange goods and services. They eliminate common complaints concerning the operation of development projects such as:

"There's no money to pay people to write out the water bills"
"There's no money to collect the monthly contributions"
"The people can't afford san-plats for their toilets"

Very often, all that is needed is a way to transfer goods and services within the community without having to use formal money.

We propose to make participation in the LETS systems compulsory for all people in the project area of working age because everybody will benefit from and participate in some of the community level initiatives undertaken within the project. For instance, PV lighting for study will be financed at local tank commission level and its costs written off against the users in that tank area only. Others, such as tree-planting or road building may benefit the whole community and every member will be charged for his share. Compulsory membership is also needed where common assets are being used or sold or when goods and services for the project have to be supplied in the local currencies.

Nearly all LETS transactions are open to normal "free market" negotiation between the parties.

Many goods and services like those provided by the Community Health Clubs, and those needed to build the sanitation and water supply services can be paid for using the LETS systems. We have included some formal currency estimates for these goods and services so that enough micro-credit loan money is available to start developing local production.

For more information on the nature and organisation of LETS systems, refer to Schedule 8.

LETS systems will be set up in Seniagya and Asokori.

3.6 PV lighting, television and refrigeration

A PV lighting system for study can be installed in each tank area once a study area has been built there using the local LETS currency. The cost of the study area would be equally debited to all LETS members in the tank area.

Enough money has been set aside in phase 4 of the project to cover 377 PV lighting systems.

The purchase of a PV operated TV set for each of study area is subject to discussion and has been listed "pro-memorium" in the budget. We have done this because:
- it is not known how much suitable educational material is available in the local languages
- the TV set would need to be safely housed in a weather-proof environment
- of maintenance and security problems

We have also listed the purchase of PV lighting and refrigeration for clinics outside the project area "pro-memorium" in the budget pending complete information on the necessity, as it is understood most clinics are already grid connected. This is because the willingness to share the onus of payment will have to be discussed from case to case and consents to transfer of ownership to the local tank commissions would have to be obtained.

PV lighting for schools has also been listed as "pro-memorium" in the budget pending more information on the schools and their needs with respect to evening classes.

3.7 DOMESTIC SOLAR HOME SYSTEMS

Home lighting in the project area is usually fuelled by paraffin and kerosene lamps the average cost of which is about US$7 per family of 8 per month, more in case of shortage of fuel. This outgo constitutes a serious financial leakage from the project area which should be stopped. Some families may be able to finance the purchase of solar home systems through savings effected on the costs of petroleum and, for instance, batteries consumed for radios. The project will set up a separate cooperative interest-free fund under which solar home systems can be installed and more efficient radios purchased within interest-free self-terminating building society structures set up at tank commission level.

The tank commissions will decide the social priorities for the gradual distribution of these systems. They may for instance decide priorities by drawing lots. The seed fund is purely to set an example, and cannot supply more than 150-200 systems to launch the system. The rest of the money must come from the cooperative contributions made by the users participating.

The speed of the distribution of the systems will depend on the time required to reimburse the credits received by each family. A family accustomed to paying US$12 a month for lighting and batteries will be able to repay a system from savings within about 4 years. A poorer family would need much more time. Alternatively each family can pay an affordable amount into the Tank Commission fund and new systems distributed by lot each time there is enough money in the fund.

Distribution of solar home systems is expected to commence in the last, phase 4, of the project. Various activities currently cause of financial leakage from the project area will then be taking place under the local money (LETS) systems, and it is conceivable that (some) users have more formal money available than before. They can therefore form buying cooperatives for solar home systems at tank commission level, whereby each family contributes an amount (eg US$5) each month into its cooperative lighting fund. This would allow one family out of 30 to install a system each 6 weeks. This would mean that each family would have a solar home system installed within about 4-5 years after the start of the cooperative and the elimination of financial leakage from the project area due to lighting and radios within 6-7 years.

Financial leakage through the use of inefficient battery-driven radios could be stopped by the use of high efficiency radios and/or mechanical wind-up radios. It should be possible to recover the cost of the new radios through savings on batteries within one year.

3.8 Payments and on-going costs

The following drawings and graphs form an integral part of this project proposal. To avoid long downloading time they are not included in this document. They can be accessed through website http://www.flowman.nl and will be transmitted as e-mail attachments to any interested parties.

GRAPH SHOWING DEVELOPMENT OF MICRO-LOANS .
THE INTEREST-FREE LOAN CYCLE .
HOW THE ORIGINAL SEED LOAN MONEY IS USED.

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 01-30 of budget

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 31-59 of budget

DETAILED EXPENDITURE FIRST QUARTER

DETAILED EXPENDITURE SECOND QUARTER

DETAILED EXPENDITURE THIRD QUARTER

DETAILED EXPENDITURE SIXTH QUARTER

GRAPH SHOWING DEVELOPMENT OF MICRO-LOANS .
THE INTEREST-FREE LOAN CYCLE .
HOW THE ORIGINAL SEED LOAN MONEY IS USED. TYPICAL PROJECT EXPENDITURE BY QUARTER : items 01-30 of budget TYPICAL PROJECT EXPENDITURE BY QUARTER : items 31-59 of budget DETAILED EXPENDITURE FIRST QUARTER DETAILED EXPENDITURE SECOND QUARTER DETAILED EXPENDITURE THIRD QUARTER DETAILED EXPENDITURE FOURTH QUARTER

The people of the Asokori area in the Sekyere East district in Ghana are poor and plagued by a low quality of life. The initial seed capital will therefore come from donors in the form of an interest free loan repayable over a period of ten years.

The users will pay a monthly fee to be decided during phase 2 of the project. It is expected to be approximately US$5 per month for a family of eight. This sum will be used:

- to repay the loan itself. This money will be re-cycled interest-free for use as micro-credits to develop local production capacity.

- to pay on-going administration and maintenance costs. This money pays the monthly fees of the project coordinator and the salaries and transport costs of maintenance and inspection personnel and of the tank commissions.

- to set up reserves for long term maintenance. These funds will also be re-cycled for micro-credits but managed so that the capital is available when it is needed.

Once the original seed money has been repaid, the monthly payments will create a large fund for use to extend the basic services provided under this project.

The whole cost of the Gypsum composite(R) production units will be covered by interest-free loans repayable over 3-5 years. This capital can also be re-cycled as it is repaid.

There will be large savings in the traditional cost of fuel for cooking. The savings will come from using high efficiency Gypsum composite (R) stoves and local production of bio-mass for fuel.

Provision of drinking water under the project will avoid the need to purchase expensive water from vendors especially in poor urban areas.

Waste re-cycling under the project will produce savings by creating value added from resources currently unused and because payments for collection and handling of the waste will be kept inside the local economy.

4. Work Plan

4.1 First, initial, research phase

This can be completed prior to the formal presentation of the project. All relevant details are collected and a first, indicative budget developed. Contacts will be made with potential suppliers and the basic project technologies selected. The project coordinator will contact the local people to discuss their wishes and willingness and ability to meet any net financial commitments under the project after taking into account direct savings.

Users must accept the five conditions precedent to the success of self-financing development projects of the type here presented:

4.1.1 Acceptation of Health Clubs. These do not only serve the purposes of offering basic hygiene education courses. They also serve as a platform for women, so that they can organise themselves and participate and play an important role in the various structures foreseen. The health clubs therefore constitute a means of addressing the so-called "gender problem".

4.1.2 Willingness to pay at least US$5 per month per family of 8 into a Cooperative Development Fund. This payment covers the entire package of basic services foreseen (hygiene education, drinking water supply, sanitation, waste removal, high efficiency stoves and fuel for them, and lighting for study purposes.

4.1.3 Acceptance of the use of local exchange trading (LETS) systems, which enable goods and services originating in the project area to be exchanged without the need for formal money.

4.1.4 Acceptance of the GYPSUM COMPOSITE process which enables most of the items required for local development to be made locally with 100% local value added within the framework of the local LETS systems in local low cost labour intensive production units.

4.1.5 Acceptance of dry composting toilet systems to Western levels with the separation of urine and excreta. Aspects relating to the form, the colour, the finish, privacy and similar will all be discussed with and decided by the users. The dry toilet systems foreseen enable waste to be recycled at household level so that problems connected with the pollution of surface and ground water can be addressed at local level without the need for major investments.

The key project sites including clinics and schools are shown on the map of the Asokori area in Schedule 3.

There is no budget needed for the work during this first phase.

4.2 Second phase lasting about 9 months

The following graphs can be downloaded from internet site www.flowman.nl or transmitted as attachments to an e-mail message on request or posted on a CD..

This is the most critical phase during which the basic structures necessary for the operation of the entire system are set up by way of a series of organizational workshops following the method introduced by the Brazilian sociologist Clodomir Santos de Morais.

Refer to Schedule 2 for some material and a bibliography on Organisational Workshops.

The sequential order of the workshops is very important. The first workshops are the ones setting up the Health Clubs, which offer women a platform from which they can organise themselves. After that, the tanks commissions, which are the heart of the system, can be established. The third structure is the local money LETS systems, followed by the micro-credit system, the Gypsum composite factories, the water supply system, and the recycling system.

4.2.0 PAYMENT OF THE PROJECT FUNDS

A plan for the effective payment of the project funds to the local NGO is prepared.

4.2.1 HEALTH CLUBS AND HYGIENE EDUCATION IN SCHOOLS

4.2.1.1 Health clubs

The Health Clubs must form a socially acceptable platform to get users, and especially women, to work together as this is the base of the project. They will create a forum for women, so that they can identify the needs of the community and participate fully in the planning and execution of the structures to be set up.

Usually at least two Moraisian workshops will be held during which draft Health Clubs rules will be prepared and discussed with the local people so the community fully "owns" the project. The Health Clubs will be a socially acceptable method of getting people used to working together, the cornerstone for a successful project. Local Health Workers will be trained to lead Health Club discussions. Material for the Health Clubs and for hygiene education courses in schools will be adapted, preferably using local artists. Preference will be given to the use of traditional Ashanti art styles.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
The Zimbabwe AHEAD Consultant
Representative of the ONG
At least 5 observers (possible coordinators for future projects)
20 qualified instructors indicated by the Ministry of Health to guide the Health Club lessons
400 female initiative takers at the level of the future Tank Commissions

Duration of each workshop: about three weeks.

The Workshops will be expected to produce the following structures:

a) A system coordination structure for coordination:
- with the project coordinator
- amongst the main project areas
- with the Health ministry
- amongst the Health Ministry trainers and the women locally responsible
- the statues and rules for the running of the clubs

b) A materials structure
- discussion with potential members of the Health Groups
- definition of the content of the courses according to local requirements
- adaptation of the material according to local customs (illustrations, languages etc)
- actual physical preparation of the course
- distribution of the material

c) A methodical structure
- how to use the material
- the role of the Health Ministry specialists
- the role of the local Health Club leaders
- practical exercises
- how to call meetings and lead the first lessons
- continuation of the Health Clubs after the termination of the courses

d) A communications structure
- vertical, at project level (coordinator, Health Clubs leaders, Health ministry teachers)
- horizontal, amongst local Health Club leaders, (future) radio programmes at local radio stations

e) A structure at local Tank Commission level

- Payment of the local Health Club leader once the local money systems have been formed - Relationship between the local Health Club leader and the (future) Tank Commission - Relationship between the local Health Club leader and the Health ministry teacher responsible for the area - Discussion with persons (women) interested in the (future) local Tank Commission - Registration of Health Club members - Practical organisation of the lessons and later group meetings

BASIC INDICATIVE COURSE FOR HEALTH CLUBS

4.2.1.2 Hygiene Education in the Schools

Usually at one Moraisian workshop will be held during which Local Health Workers will be trained to lead hygiene education courses in the schools. Material for the courses in schools will be adapted, preferably using local artists. Preference will be given to the use of traditional Ashanti art styles.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
The Zimbabwe AHEAD Consultant
Representative of the ONG
Representative of the Health Ministry
Representative of the Education Ministry
At least 5 observers (possible coordinators for future projects)
20 qualified instructors indicated by the Ministry of Health to guide the lessons
50 teachers from the schools

Duration of each workshop: about three weeks.

The Workshops will be expected to produce the following structures:

a) A system coordination structure for coordination:
- with the project coordinator
- with the Health ministry
- with the Education ministry
- amongst the Health Ministry trainers and the teachers' commissions

b) A materials structure
- discussion of course content according to the different levels of the pupils
- definition of the content of the courses according to age groups (illustrations, language etc)
- adaptation of the material according to local customs (illustrations, languages etc)
- actual physical preparation of the course
- distribution of the material

c) A methodical structure
- how to use the material
- the role of the Health Ministry specialists
- the role of the teachers
- planning the courses
- continuity

d) A communications structure
- vertical, at project level (coordinator, Health ministry specialists, teachers' commissions)
- horizontal, amongst the teachers' commissions and the families, (future) radio programmes at local radio stations

e) Formalities - Payment (in LETS) of the Health ministry specialists - Payment (in LETS) for the teachers involved

4.2.2 LOCAL SOCIAL STRUCTURES

Usually at least two Moraisian workshops will be held. The Tank Commissions form the basic project structure and the workshops can involve up to 1500 people.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
Consultant Terry Manning
Representative of the ONG
Representative of the Finance Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
1300 (mostly female) persons interested in participating with responsibility for the management of projects structures as members of the Tank Commissions. 35% of these people might be indicated by the traditional chiefs, 65% by the local Health Clubs.

Duration of each workshop: about four weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the tanks commissions and the well commissions
- statutes
- rules
- financial aspects
- definition of the tasks

b) Organisation
- meetings
- use of tanks and well areas

c) Coordination
- with project coordinator
- (future) local SEL-LETS system
- between local tank commissions and the well commission
- with local schools
- with local clinics/hospitals
- with (future) recycling systems
- with (future) micro-credit structures

d) A communications structure
- vertical, at project level (coordinator)
- horizontal, with the +/- 40 local families

e) Individual initiatives

- Payment of the local Health Club leaders once the local money systems have been formed - Relationship between the local Health Club leader and the (future) Tank Commission - Relationship between the local Health Club leader and the Health ministry teacher responsible for the area - Discussion with persons (women) interested in the (future) local Tank Commission - Registration of Health Club members - Practical organisation of the lessons and later group meetings

4.2.3 THE LETS LOCAL MONEY SYSTEMS

For detailed information on LETS systems refer to appendix 8

Usually at least two Moraisian workshops will be held, one for each local money LETS system.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
Consultant Terry Manning
2 representatives of the ONG
Representative of the Finance Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
100 persons, indicated by the well commissions, who will have indicated their interest in registering transactions
400 persons (men and women) indicated by the Tank Commissions interested in taking responsibility for the management of the LETS systems at tank commission level.

Duration of each workshop: about six weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the LETS structures
- statutes
- rules
- professional and administrative structures
- financial aspects
- relationships with other non-formal local money systems

b) Structure for the registration of transactions
- physical working space (offices)
- adaptation of environments against weather and dust
- safety and back-up procedures to protect information
- purchase of computers, printers, equipment for registration of members et electrical connections eventually using PV
- distribution of physical structures: LETS boxes, notice boards
- preparation of cheques or other instruments of exchange to be used
- publication of the services available within the system

c) Coordination with users
- preparatory meetings with users at tank commission level
- presentation of the local coordinator
- registration of members
- distribution of cheques or other instruments of exchange
- starting transactions

d) A communications structure
- vertical, at project level (project coordinator, transaction registrars, those responsible at tank commission level, users)
- horizontal, with the various persons responsible at the same level (amongst transaction registrars, amongst tank commission level operators)
- horizontal, amongst local money systems
- commercial, radio, website

4.2.4 MICRO CREDIT SYSTEM STRUCTURES

The Asokori Rural Bank will manage formal currency funds necessary for running the project, acting on instructions of the project coordinator given on receipt of the indications received from those responsible at tank commission level. The funds do not belong to the bank, which will intervene only in the practical management and transfer of the funds. The decisions are taken by the users' structures set up under the project. The funds formally belong to the users until the expiry of the 10 years' interest-free credit term. The interests of the financing parties are protected by their representatives nominated to the board of the ONG, who will be invited to participate in the workshop.

The services of the bank will be paid in local LETS monies at a fixed rate per transaction to be set during the workshop. The bank can then use its LETS credits to purchase goods and services inside the project area and sell them for formal money outside the project area.

Indicative participation

The Moraisian trainers
The project coordinator
Consultant Terry Manning
2 Representatives of the ONG acting on behalf of the financing parties
Representative of the Finance Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
At least 6 qualified persons, 3 indicated by the ONG and 3 by the project coordinator
350 persons, indicated by the tank commissions, interested in participating with responsibility for credit arrangements at tank commission level.

Duration of the workshop: about six weeks.

The Workshop will be expected to produce the following structures:

4.2.4.1 The micro-credit system

a) Definition of the social form
- statutes
- rules
- professional and administrative structures
- financial aspects
- relations with the LETS local money systems

b) Physical aspects
- land
- office
- safety
- communications

c) Financial aspects

- funding of initiatives at general project level (recycling structures, important productivity initiatives, public works)
- funding of initiatives at intermediate, well commission, level
- funding of initiatives at local tank commission level
- funding of socially based initiatives (clubs, interest groups etc)
- traditional banking activities

4.2.4.2 Organisation of operations

a) Central structure

b) De-centralised structure
- Preparation operators
- Meetings at tank commission level

c) Coordination
- With LETS structures
- With tank commissions
- With project coordinator

d) Financing of specific projects
- Relations with financiers

e) Communications structure
-Vertical, at project level (project coordinator, transactions operators, tank commission level operators, end users)
Commercial, radio, website

4.2.5 GYPSUM COMPOSITE PRODUCTION UNITS

Three Moraisian organisational workshops will be held, one for each production unit.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
Consultant EOS Consult
At least one representative of the NGO
Representative of the Ministry of Health
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
150 persons (men and women), indicated during meetings held at Tank Commission level, interested in participating in the activities of the factories. Where opportune, according to local political structures and traditions, up to 25% of the people could be indicated by the local chiefs.

Duration of each workshop: about six weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the production units
- statutes
- rules
- professional and administrative structures
- financial aspects
- relationship with the local LETS systems

b) A structure for the supply of materials
- geological research for gypsum and/or anhydrite deposits
- locations of gypsum/anhydrite quarries, permits
- activities preparatory to exploitation
- logistics
- coordination of materials depots with the factories

c) Definition of the items to be made (tanks, toilets, stoves, solar cookers etc)
- coordination with the other production units (specialisation)
- contacts with families
- definition of requirements : articles and specifications
- definition of requirements : design, productive capacity
- definition of the necessary procedures
- preparation of moulds
- tests
- decision on priorities to be given to the various items

d) A structure for the factories
- land and necessary structures
- design of factories
- construction of factories
- purchase of necessary equipment

e) A production structure
- organisation of the production
- commercial organisation

f) A structure for the installation of the items produced
- Relationship factory-installers
- Preparation of the installers
- Installation
- Siting of boreholes/wells
- After sales backup and service

g) A structure for communications
- Vertical, at project level (project coordinator, factory manager, factory commissions, installers, end users)
- Horizontal, between production units
- With the local money LETS systems
- Commercial, radio, website

4.2.6 THE RECYCLING STRUCTURES

A special fund is included in the budget to cover the costs of setting up the recycling structures, which have priority. The funds will be repaid by the beneficiaries in the same way as those made available to the Gypsum composite factories. They will take the form of interest-free credits repayable according to the real possibilities of those involved as decided during the organisational workshops during which the structures are set up. The repayments will be financed by sale of materials such as fertilisers and compost outside the project area and by the "exportation" of solid non-organic waste which are not recyclable within the project area itself. For an illustration of a possible general structure for the integrated recycling of waste in project areas refer to:

DRAWING OF WASTE DISPOSAL STRUCTURES.

The work of the recycling structures will be carried out within the local money LETS systems already set up. One of the more interesting features of LETS systems is that, in contrast with what happens in the western monetised economies, work considered as "dirty" and/or "heavy" is usually better paid than "clean" and/or "light" work as the rates charged will normally be related to the perceived value of an hour's work in the foreseeable normal working situation.

Two Moraisian workshops will be held, one for each LETS local money system.

Indicative participation (all workshops together)

The Moraisian trainers
The project coordinator
Consultant Terry Manning
At least one representative of the ONG
Representative of the Finance Ministry
Representative of the Health Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
150 persons (male and female)indicated by the tank commissions, interested in participating.

Duration of each workshop: about six weeks.

The Workshops will be expected to produce the following structures:

a) Definition of the social form of the structures
- statutes
- rules
- professional and administrative structures
- financial aspects including relations with the Micro-credit institution
- relations with the local money LETS systems

b) Analysis of requirements

c) A structure for the recycling centres
- Definition of the land requirements and the physical structures necessary
- formalities and permits
- design of the centres
- construction of the centres
- purchase of the necessary equipment

d) A structure for the collection/deposition of waste
- urine
- composted excreta
- waste water
- other organic waste
- non organic solids
- special industrial wastes
- medical wastes
- who will do what
- definition of individual zones
- definition of specialisations

e) A commercial structures
- definition of the tariffs applicable to the various types of material
- distribution of urine and composted excreta
- direct recycling of certain materials
- contacts for the exportation of materials not recyclable locally

f) A monitoring structure
- sanitary conditions
- ecological conditions
- safety conditions

g) A communications structure
- vertical, at project level (coordinator, centre managers, collection structures, end users)
- horizontal, between centres
- relations with local money LETS systems
- commercial, radio, website

4.2.7 STRUCTURES FOR THE PRODUCTION OF BIO-MASS FOR STOVES

For a typical possible high efficiency stove design refer to:

DRAWING OF TYPICAL HIGH EFFICIENCY Gypsum composite (R) STOVE.

The structures foreseen are for the production of mini-briquettes for the stoves to be made by the gypsum composite production units and for the production of bio-masse to make the mini-briquettes.

One Moraisian workshop will be held.

Indicative participation

The Moraisian trainers
The project coordinator
Consultant Terry Manning
Consultant EOS advises
At least one representative of the ONG
Representative of the Health Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
50 persons indicated by the tank commissions interested in the production of mini-briquettes
150 persons indicated by the tank commissions, interested in producing bio-masse for the mini-briquettes.

Duration of the workshop: about four weeks.

The Workshop will be expected to produce the following structures:

a) A coordination structure
- definition of the social form
- statutes
- rules
- professional and administrative structures
- financial aspects including payments
- relations with the local money LETS systems

b) Analysis of requirements
- detailed analysis of the present systems
- demand in the project area
- demand outside the project area

c) Analysis of the bio-masse resources available

d) Definition of the recipes (mixtures) socially acceptable

e) Creation of the physical structures for briquette production

f) Logistics
- Assembly and stocking of materials
- distribution of mini-briquettes

g) Organisation of the cultivation of bio-mass

h) Commercial
- Availability of micro-credits for growers
- Availability of micro-credits for briquette makers
- Prices for briquette distribution according to the various mixtures

4.2.8 STRUCTURES FOR THE DRINKING WATER DISTRIBUTION SYSTEM

For possible technical solutions for the drinking water distribution system refer to:

DRAWING OF WATER SYSTEM STRUCTURES.
DRAWING OF TYPICAL WATER TANK AREA.

One Moraisian workshop will be held.

Indicative participation

The Moraisian trainers
The project coordinator
Consultant Terry Manning
Consultant EOS Consult
At least one representative of the NGO
Representative of the Health Ministry
Representative of the Rural Development ministry
At least 5 observers (possible coordinators for future projects)
30 persons indicated by the tank commissions interested in the systematic maintenance of the structures
80 persons indicated by the tank commissions, interested in drilling boreholes, drilling wells and building the associated civil and associated works

Duration of the workshop: about four weeks.

The Workshop will be expected to produce the following structures:

b) Analysis of requirements
(Refer to Schedule 1 for full details)

c) Hydro-geological research

d) Preparation of maps showing:
- sites of boreholes and wells
- tank sites
- feed-pipe installation lines

e) Specifications
- Work bases/depots
- Boreholes/wells
- Solar pumps
- Hand pumps
- Washing areas
- Solar panels
- Panel supports
- Borehole/well surroundings
- Laying of pipelines
- Installation tanks
- Eventual installation of UV purification units
- Training of well commissions
- Training of tank commission

f) Permits

g) The civil works
- Base for storage of equipment and materials
- Formation of teams
- Planning of works
- Logistics
- Equipment and materials

h) Installation of the structures

i) Maintenance
- Creation of the maintenance structure
- Relations with suppliers
- Importation and management of spare parts
- Planning of preventive maintenance
- Maintenance kits
- Monitoring system
- System of statistics f) Logistics
- Assembly and stocking of materials
- distribution of mini-briquettes

g) Organisation of the cultivation of bio-mass

h) Commercial
- Availability of micro-credits for growers
- Availability of micro-credits for briquette makers
- Prices for briquette distribution according to the various mixtures

4.3 THIRD, IMPLEMENTATION PHASE

The structures created during the second phase execute the works they have planned:
- On-going work in the Community Health Clubs
- On-going hygiene education in schools
- On-going operation of the local LETS currency systems
- Start-up of the Micro-credits
- Start-up of recycling
- Start-up of mini-briquette and bio-mass production
- Completion of Gypsum composite (R) production units
- Start-up production of Gypsum composite (R) items for the project, including stoves and solar cookers
- Digging and lining of the wells and boreholes
- Construction of platforms for backup hand-pumps
- Construction of washing places
- Laying of water pipelines to the tanks
- Installation of the tanks.
- Installation of purification devices at schools and clinics
- Start-up of waste collection networks
- Installation of solar panels and pumps
- Installation of hand pumps
- Production of sanitation units started

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 01-30 of budget

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 31-59 of budget

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 01-30 of budget

DETAILED EXPENDITURE SIXTH QUARTER

4.4 FOURTH, SECOND IMPLEMENTATION PHASE

On-going production of Gypsum composite (R) products
- PV lighting for study
- (Pro-memorium) PV television for study purposes
- (Pro-memorium) PV lighting in schools
- PV lighting and refrigeration in clinics in the project area
- Further PV water purification
- (Pro-memorium) Soil conservation and re-forestation initiatives started
- (Pro-memorium) Rainwater harvesting begun

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 31-59 of budget

GRAPH SHOWING DEVELOPMENT OF MICRO-LOANS. THE INTEREST-FREE LOAN CYCLE.

HOW THE ORIGINAL SEED LOAN MONEY IS USED.

5. Short indicative budget

Outgo (Capital)	Phase	Estimate (US$)
OW health clubs	2	30.000
Formation of health clubs	2	10.000
Material for health clubs	2	5.000
Training of health workers	2	10.000
OW health courses in schools	2	10.000
Material for school courses	2	2.500
OW social structures	2	40.000
OW LETS systems	2	60.000
Office and equipment LETS systems	2	30.000
OW Micro-credit system	2	20.000
Office/equipment Micro-credit system	2	10.000
OW Gypsum composite production units	2	30.000
Shovel/preparation anhydrite supply site	2/3	10.000
Construction and equipping anhydrite factory (*30000 FOR EACH FACTORY) ASSUMING 3 UNITS	2/3	60.000
Moulds for anhydrite products (*20000 FOR EACH FACTORY) ASSUMING 2 UNITS	2/3	60.000
Location gypsum depots and quality control	2	3.000
OW recycling system	2	30.000
Setting up recycling centre network	2	150.000
Setting up compost collection network	2	5.000
OW Bio-mass system	2	15.000
OW Drinking water system	2	25.000
Setting up of project workplace	2	29.000
Vehicles and materials for wells	3	150.000
Fuel and maintenance vehicles	3	26.000
Labour for wells - LETS systems	3	pro-memorium
47 Washing places- LETS systems	3	pro-memorium
47 Platforms for hand-pumps - LETS systems	3	pro-memorium
377 Pumps (300W per pump)	3	400.000
377 Supports for solar panels	3	50.000
Solar panels (377*300 W=113kW)	3	600.000
47 Triple hand-pump groups (141 pumps)	3	68.000
Cables, feed-pipe for pumps/wells	3	65.000
Pipe lines from wells to tanks - 200000m @ US$ 1	3	100.000
Labour for laying water pipelines- LETS	3	pro-memorium
377 Water tanks (@ 2m * 1.7m)- mostly LETS	3	50.000
377 Bases for water tanks - mostly LETS	3	25.000
Supervision of installation and training maintenance operators	3	15.000
Purchase spare parts supplies	3	20.000
Permits and formalities	2	1.000
Preparation and formulation of project specifications	2	6.000
100 Solar water purification installations for clinics and schools	3	47.500
900 Solar water purification installations (inc.15.000 Wp panels)	4	128.500
377 PV lighting units for study purposes	4	255.000
PV television for study	4	pro-memorium
PV lighting for schools	4	pro-memorium
PV lighting for clinics outside the project area	4	pro-memorium
PV lighting for clinics inside the project area	4	15.000
PV refrigeration for clinics @ US$ 5000/clinic	4	15.000
Water testing equipment	4	5.000
Transport costs US$ to Ghana	3	30.000
Transport costs internal to Asokori	3	22.500
Administration and supervision at Asokori Ghana	3/4	36.000
Fee Project coordinator @US$ 50000/year	1/5	100.000
General project consulting Manning @US$ 50000/year	1/5	100.000
Fund for PV lighting solar home systems	4	100.000
Sanitation facilities with exception of some additvites will be manufactured and installed within the local LETS systems		15.000
OW radio production	4	25.000
Fund for high efficiency radios	4	52.000
Reserves approx.9.5% of total	5	333.000
General total	5	3.500.000

SHORT ANALYSIS

Outgo (Capital)	Phase	Estimate (US$)
Total first phase	1	0
Total second phase	2	586.500
Total phase 3	3	1.767.000
Total phase 4	4	613.500
Fees project coordinator	1/5	100.000
Total supervision Manning	1/5	100.000
General total all phases		3.167.000
Reserves approx 9.5%	5	333.000
Total 1+2+3+4+5		3.500.000

ON-GOING COSTS

On-going costs	US$

Coordinator for administration	15.000
Maintenance operators	5.000
Tank commissions (377*5 US$ p.m.)	22.620
Spare parts	15.000
Reserve for theft	15.000
Unforeseen	7.500
Total recurrent costs	80.120

INCOME

Income	US$

Annual contribution for use of water (6.500 households @ US$ 5 p.m.)	390.000
On-gong costs per year	80.120
Net annual income for loan repayment	309.880

Comments

1. The above net income is sufficient to finance and repay an interest free loan for US$ 3.500.000 over a period of 10 years, taking the various reserves into account.
2. Interest-free loan for Gypsum composite (R) each factory US$ 50.000, for repayment over a period of 3-5 years is included in the above figures.
3. At the end of the ten years' period, on repayment of loan, large capital reserves will be built up for use in Micro-credits and, subsequently, for the extension and renewal of the capital goods.
4. Payments for water facilities for schools and clinics are included in the users' monthly contributions.
5. Payments and financing for eventual PV lighting and refrigeration facilities in clinics within the project area are covered in the users' contributions. Those for clinics and schools outside the project area partly serving users within the project area to be discussed.
6. Payments for PV lighting installations for study purposes will be financed by each tank commission area separately.
7. Savings on the purchasing of bio-mass for cooking and the costs of drinking water will at least partly offset the costs of the project.

RECYCLING OF FUNDS FOR MICRO-LOANS

The funds recycled are approximately 16.000.000 US$. They are made up of:

a) Repayments of the interest-free seed loan itself. These are shown as horizontal lines at the bottom of the micro-loans graph. They are constant. During quarters 42-45 the amounts left for repayment UNDER THE PROJECT are reduced to zero. However users continue to make monthly contributions on their own account, so the recycling of funds will in practice continue. The capital fund will build up again as shown in the micro-loans graph. It will drop again when replacements of the original capital goods are made or the system services extended. It will then build up for a third time to cover further collective capital investments and so on for so long as the users continue making their monthly contributions.

b) Certain capital sums (eg repayments for the Gypsum composite (R) factories) and reserves.

c) Repayments under the micro-loans. These are seen as diagonal lines in the micro-loans graph. Towards the end of the project period, payback times are shortened to ensure capital re-enters in time for repayment of the original seed loan.

GRAPHS FORMING AN INTEGRAL PART OF THE PROJECT DOCUMENT

GRAPH SHOWING DEVELOPMENT OF MICRO-LOANS.

CASH FLOW DIAGRAM.

THE INTEREST-FREE LOAN CYCLE.

HOW THE ORIGINAL SEED LOAN MONEY IS USED.

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 01-30 of budget

TYPICAL PROJECT EXPENDITURE BY QUARTER : items 31-59 of budget

DETAILED EXPENDITURE FIRST QUARTER

DETAILED EXPENDITURE SECOND QUARTER

DETAILED EXPENDITURE THIRD QUARTER

DETAILED EXPENDITURE SIXTH QUARTER